Swedbank introduces responsible investment standards in all pension plans

Swedbank Ieguldījumu Pārvaldes Sabiedrība has started gradually applying sustainability principles in its 2nd and 3rd pillar pension plans from June this year. As a result, stricter control of environmental, social and corporate governance aspects in investments will be applied going forward. This includes whether the investments facilitate environmental protection, respect for human rights and rights of workers, ensures as high business ethics as possible, and other sustainability principles.

In addition to the traditional criteria concerning safety, development potential, reliability of companies and other considerations, the sustainable investment policy entails careful assessment of various sustainability criteria, such as environmental and climate impact of the company in question. Hence, in sustainability-based investments, Swedbank will refrain from investing in companies violating the principles outlined above or in economic sectors not compatible with sustainability. Also, the sustainable investment policy entails a possibility to influence thinking in the business environment not only through its investment policy but also by educating corporate customers about application of sustainability principles in their operations.

Ensuring high long-term yield is one of the most important goals for Swedbank Ieguldījumu Pārvaldes Sabiedrība as a pension manager. Consequently, avoiding companies that are essentially subject to sustainability-related risks minimizes the risk and potential losses in investments. Moreover, observations show that sustainability-aware companies perform better in business. Sustainable companies look for creative solutions to technologies of the past, which in turn prompts development of new technologies with much higher added value. So in the long-term, such an investment policy can generate higher return on pension capital and it’s good news for all pension savers.

Swedbank Ieguldījumu Pārvaldes Sabiedrība is an investment management company with the longest track record in Latvia and manages Swedbank pension plans in cooperation with Swedbank Robur that has been in operation since 1967.